Cloudscaling was founded in 2006 by Randy Bias and Adam Waters. It started as a professional services company selling custom cloud infrastructure for large service providers, chiefly telecom service providers. The company’s engineering team had previously worked on cloud projects for Yahoo!, Amazon Web Services, VMware and Puppet Labs. KT Corporation (formerly Korea Telecom) was an early customer, for which the company in 2010 designed and deployed a cloud with CloudStack software and another that was the first OpenStack storage cloud (Swift) outside of Rackspace. Cloudscaling also designed and deployed an OpenStack Swift storage cloud for Internap in 2011.[2][3]

In February 2012, the company shifted its focus to become a product company, announcing version 1.0 of Open Cloud System.[4]